Скачать или смотреть Section 121: The $500k Exclusion Explained

Jeremy breaks down the complex rules surrounding Section 121's capital gains exclusion for home sales, using the Weber v. Commissioner tax court case to illustrate how taxpayers can lose out on excluding up to $500,000 in gains. The episode covers the critical two-out-of-five year ownership and use tests, explains how rental conversions can disqualify you from the exclusion, and details the partial exclusion exceptions for employment changes, health issues, and unforeseen circumstances. Understanding these nuances is essential since home sales often represent the largest financial transactions in taxpayers' lives.

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01:05 Capital Gain Exclusion Introduction
03:21 Case Study: Webert vs Commissioner
05:51 Defining Principal Residence
15:58 Ownership and Use Tests
26:07 Understanding Spousal Eligibility for Exclusion
27:15 Principal Residence Usage Requirements
29:16 Counting Days and Periods of Absence
31:00 Special Considerations for Older Taxpayers
32:21 Ownership Through Trusts and LLCs
35:21 The Once Every Two Years Rule
39:34 Non-Qualified Use Explained
45:30 Case Study: The Webers' Tax Court Case
46:36 Partial Exclusions and Safe Harbors
55:15 Conclusion and Key Takeaways